citigroup, up to $15.6 billion.hing you were saying about concerns and the banking sector. banks would say, look, we cannot do our job properly because we are overregulated and some of that needs to be pulled back. where is the middle ground? pravit: i do not favor all of the regulations, from my perspective, i put capital ahead of liquidity regulations. there are a lot of things i would be willing to ease on. not quite the way they talk about it, but in the general direction. if you can reliably bear risk and be trusted not to abuse privileges, i would mind less. but the evidence is that it is not the case. conduct in banking is really pretty bad, repeatedly. ,he rap sheet of these banks $321 billion in fines. that is to above the iceberg. not feel it is an efficient industry. joe: bond investors care about these stress tests or make their own assessment? is this something they check in on occasionally? arnold: the equity investors right now, stocks are high and bank bonds are pretty tight, as well. we do care abou

tom -- he owns citigroup, i don't.eard american express, you know, they had all the advertisements for the nba finals and all the games and they're reasserting themselves as the 5% charge guys, you've got o to love it and of course they want to pay more dimpbds everybody else charges 2.5, they should get to pay me twice as much we have bank of new york >> looets look at bank of new york the bank following suit rising it's dimpbd by 26% tls also expected to increase it's -- excuse me, $2.6 billion buyback also being announced by the bank as well, shares are unchanged, switching focus to bbnt, the company raising it's dimpbd by 10% to 33 cents a share and also announcing a $1.88 billion buyback. and if we have a second, look at key corpse also announcing it plans to raise dimpbds by 5% >> thank you the share price reaction is muted. you know, we're talking about 1% increases for -- and i think citi's case maybe the biggest ever a lot was priced in, correct, tom? >> right and i'm happy based on the action today that befor

and the citigroup economic surprise index was above 50. it was ramping it was on the pro-trump trade. it had got,en too nuenthusiastic the ten-year note yield at 212 those stimulative expectations are too important. if there's one message i can ever give to the viewers of the network, that is you never want to get out of stocks sustainably until well after you invert the yield curve and shut credit down in the u.s these guys are traders and can trade around it. i would never take a negative position until you see economic recession, because you don't get market peaks until you invert the yield curve, shut down credit, and end up in an economic recession >> and that's sort of the point, as you know, as anybody -- as well as anybody sees, that's like lee cooperman, you know, traditionally makes, too it's recessions are the killer of bull markets. >> they are. but it's stuff to bet on them. and when you bring an inverted yield curve, which has always led to recession wi, i believe. >> since 1954. you've had a flattening of the yield curve, of

for citigroup and pmorgan, $19.4 billion. it doubled to 32 cents a share the stock is bumping up despite having to recommit the plan and being conservative there is one firm being conservative and that is capital one. they will be buying back billions of shares compared to 2.5 and 40 cents a share per quarter. the reason being the fed had objections on a conditional basis to the way that capital one manages risks and models for potential losses and what the fed called one of the most material businesses. they cleared with continues and have to resubmit by december 28th if it doesn't meet muster, the fed can freeze the capital plan that capital one has in place. this has taken on a new tone the senior fed officials said the banks are capitalized and the u.s. financial system is safe >> this would give ammunition to those who say there should be lighter regulations on the banks and not even this level of stress test next year. >> the criticism is that regulators are trying to litigate the past crisis while the stress test have

citigroup failed in 2012 and 2014. it passed this time.he future, is it good for the health of their business right now? it is a sign we have come a long way from the financial crisis when we are looking at the health of the financial sector. it is important to remember in all of this. the question is going forward what is the strategy for these banks? how does that change? or is it the case they have got better at understanding this new system. then there is donald trump. will he change this? he says he wa nts to will he change this? he says he wants to look at fewer rules for banks and critics of these tests have long argued the banks have been burden too much with oversight and it has helped lending and stop the economy from growing as fast. what happens if they fail? are there any consequences? wells fargo got in a bit of trouble over the last year with its sales practices and there had been a lot of attention paid. people were waiting to see whether or not they would pass. they did pass. another bank, capital one, its plans for how it

for peak in a sharp way, bond yields are correlated when you get that citigroup surprise index this low, it has led to a lower yield in a 50 basis point up on the long end so similar to december when it was a contrarian trade to go neutral on the tape, i'm going bullish. i did it two weeks aa go, it's on the trump trade, mellissa it's not necessarily anything to do with donald trump it's the perception. >> you said health care. what's wrong with that point >> to be clear, i'm saying if you are significantly overweight, cut it back. >> okay. >> never ever, i saidthis i us ever about 15 times, each time i'm on the show. you never ever, ever, everer, ever, want to get negative sustainably and defensive. to david's point, unless you have a recession on the horizon. you have a -- you probably don't have a recession until at least 2020 based on the current fed doc when the ten-year treasury yield is have you corrections that come into play t. problem is, people are feeding into the correction taking it as an economic statement to when it hasn't. >> you like financials and the cyclicals at

let's look at citigroup. to citigroup buyback was up 15.6 billion of shares.they doubled the dividend to $.32 a share, far more than acted by even the most optimistic analyst. america another positive story. most analysts had expected city and bank of america to be among the big expected winners. they had an exceptionally high payouts. bank of america announcing a $12 billion share buyback in the dividends being posted to $.12 a share. interesting to note that wells fargo was spotted as perhaps a risk area because of the problems that had with their accounting scandal, but they join the party as well. the shares were up after hours, raising the dividend by 3%. with 11s fargo plan point $5 billion buyback. the fed did announce concerns, allowing the bank to pass provisionally or conditionally, but they have to resubmit a plan by the end of the year. they were concerned about material weakness and also concerned that the bank did not it for thursday. the bank expected to party on. head at --obal thanks for getting up and coming to join us. we have a lovely graph

are caught a libre was upgraded to buy over at citigroup.ome of the other strength that we are seeing outside of the fang stocks is in the chipmakers, which have been among the most hard-hit of the tech stocks during the pullback. macron, amd, and applied materials are all coming back today, part of the balance we are seeing. vonnie: julie hyman, thank you for that update. senate democrats will begin their efforts to slow down the gop health bill. later this evening, we will have the details. this is bloomberg. ♪ vonnie: this is "bloomberg markets." i am vonnie quinn. let's get a check of the first word news this afternoon. jessica: prime minister theresa may has visited a mosque hours after a van rammed into a cart of worshipers standing outside. police are treating it as terrorism. earlier, make condemned the attack. >> as i said here two weeks ago, there has been far too much tolerance of extremism in our country over many years. and that means extremism of any kind, including islamophobia. jessica: mesas the attacker acted alone. he was

stay in. 260, half of that in terms of 50 to be close and stocks by in large continue to do well, citigroup high yesterday, ebay, facebook, delta airlines and even in the uk despite not like here, a lot of political turmoil, the uk stock market not too far from two week-high -- all-time, excuse me. lauren: the nasdaq hit 38th record high of the year yesterday. as far as european investors are concerned. do you think they factored in the element of surprise could actually happen after we saw the u.s. elections and the trump victory and the brexit vote? >> i think they have. you know, so far nothing seemed to have shake european investors and global investors as well. they look all around the world for the top performing investments that places that are the safest to put their money in and still when you're taking a lock at equities which are still reasonably placed, maybe not so much the high-tech names, most equities are still reasonably priced, it seems to be pretty appropriate investment including government yields which are playing quite small in terms of rates. equity is not overvalued,

citigroup, wal-mart, exxon mobile, urged president trump not to quit the agreement arguing participation would help. in the rose garden trump arguing the agreement is bad for the american economy. saying he is open to finding a way to make the accord more appealing. >> begin negotiations to re-enter either the paris accord or really entirely new transaction, on terms that are fair to the united states. >> the world reacting. paris city hall going green in support of the agreement. 61 u.s. mayors pledging to adopt,on paris accord commitment. president obama releasing a statement saying, trump joins a handful of nations that reject the future. >> but the leaders of france, germany and italy releasing a joint statement saying the paris climate accord cannot be renegotiated. the french president taking a direct shot at trump. >> make our planet great again. >> that unusual statement there in english from the french president. and, the u.s. president is also getting backlash from governors, calling a group of governors calling his move insane and deviant. >> hillary clinton reacted on twitter

joanna, head of asia-pacific and market analysis at citigroup.insight from lanhee chen. let's kick off with china, johanna, because we are expecting trade data the comment and our. we have seen -- the common in an hour. we have seen a slowing of growth. do you think the global demand story, doesn't continue? >> i think it continues, but the cycle matures. we had a strong base effect uplift in the first quarter, the tech cycle particularly powerful in asia. tech exports almost 40% of total exports for east asia. now you are seeing the pmi manufacturing index, pretty much rolling over for a lot of asian countries. positive stories in terms of the euro area pmi manufacturing, still holding up, japan still holding up. we should expect a slowdown given the strength in the recovery. yvonne: to show what johanna was talking about, we have seen the peak with pmi going into contractionary territory and the china ppi prices also heading lower. take a look at the trump trade, that is fading. that makes for a good backdrop for em equities. is this a signal o

>> well, i'm in citigroup.nk you should be in the banks, scott that flatness of the yield curve is not going to get steep enough with the short end it's not going to get steep enough because the short end is coming up. >> every time somebody says we think rates are going to go up, you have to put money in the pot. >> i'm in citigroup. >> end of the year we take all the money and buy lunch. >> we can have a good dinner >> i know where we'll go you know my point, people have been saying that forever and they haven't moved anywhere. >> a sand and propellant -- it's a play on hydraulic fracturing so if you want a cheap fracking play below $5, i bought this one. >> combination of the fed and what jimmy is talking about. i agree it's going to go up. there's my money in the dish giddyup. >> good stuff, guys. we'll see you tomorrow thanks for watching as well. all-time high for the dow. "power lunch" starts now >>> will d.c. be darned? the dow hitting another record high but there's a new warning out from investing leg

citigroup, 8.0%. goldman sachs 6.0%. morgan stanley 7.9%. wells fargo,.4%. this is really -- 7.4%. from the staff to the capital plans from the big banks. last year, of course there were objections to some of them. i want to read to you why they're taking issue with capital one. this is from the report. quote. notable weaknesses were identified in the oversight and execution of capital planning practices undermine the reliability of forward-looking assessments of capital adequacy under stress. specifically the firm's capital plan did not appropriately take into account potential impact of the risks in one of its most material businesses. they won't tell us what that business is. so the bottom line, everybody passes. the other headline, expect some big dividends because they're going to be paying out as an aggregate, 100% net revenue. whereas last year, it was 65%. cha-ching. melissa: adam shapiro, thank you. david: bring in former sec chairman harvey pitt here to join us, as well as "wall street journal" economics correspondent, jon hilsenrath and jonathan hoenig of capitalist pig

it a bad deal saying it would hurt the economy and taxpayers but dozens of companies like apple, citigroupnd wal-mart and exon mobile urged the president not to quit the agreement. saying participation will help. >> we'll see if we can make a deal that is fair and if we can that is great and if we can't that is it fine. >> and the leaders of france, germany and italy saying that the paris climate accord cannot be renegotiated. french president, macron inciting american scientists to move to france to work on climate change saying that the united states turned its back on the world and france will not turn its back on americans. >> make our planet great again. >> it's a deep divide within the president's circle. it's a win for chief strategist, steve bannon but a loss for i n ivanka trump and jared kushner. >> median, kathy griffin is expected to hold a news conference any minute now. to explain why she posed with what was a fake image of donald trump. the first lady and donald trump jr. took to twit toward criticize griffin. and she has faced controversy before but none as widespread by th

but dozens of american companies include apple, citigroup, walmart, an energy company exxon mobil urged the president not to quit the agreement, arguing participation would help. >> we will see if we can make a deal that is fair, if we can, that is great and if we cannot, that is fine. >> the leaders of france, germany, italy, saying that the paris climate accord cannot be renegotiated. the french president speaking in english, inviting american scientists to france to work on climate change, saying the united states turned its back on the world but france will not turn its back on americans. >> make our planet great again. caused a deep divide with any president's inner circle, the decision to withdraw seeing as a win for chief strategist steve bannon and a loss for a volcker >> turning to the beautiful weather. chief meteorologist doug hill is here to tell us about how great this weekend will look. doug: it is spectacular with plenty of sunshine. we will see, just a few fair weather clouds now and then with beautiful temperatures and low humidity. pretty impressive numbers at noon, 81

that included jpmorgan, chase citigroup. wages.a is raising they say the boost is necessary rising ahead of a minimum wage in britain. announced wednesday that they would be closing a call center in cardiff, possibly up to 1100 jobs. chinese car maker is putting $40 million into troubled malaysia proton.ufacturer they will also contribute to an line, as parts of a deal to take a 49.9% stake in proton, agreed in may. they are also buying lotus from proton. the u.s. has suspended imports tofresh beef from brazil due concerns about the safety of the products. the u.s. department of departmef said it has rejected 11% of the beef. agriculture minister said he would travel to the u.s. to try to fight the position. and japanese drug maker is facing expulsion from the u.k. drug industry's trade organization after a series of to follow safety guidelines. the association of the british hasmaceutical industry already suspended them for a year, after believing it misled association on nurse training and prescribing information. top 20e

what i am saying is, i don't think this is a sector play, per se i like citigroup probably for the same reason you guys like it, right it trades at a nice discount to stated book value and tangible book value i look at something like blackstone with a 10% yield that i think is sustainable and could get propelled higher if they change their corporate structure. my point being is that it's stock by stock, not necessarily sector >> i think the move is maybe 10% stress test and the other 90% draghi that's what i think. and a tightening cycle that's going to occur slower here than we thought, because the economic data, and then it will pick up i think that's the reason for it >> jim, i'm 100% right with you on blackstone. i'm looking at it as well right now for a slightly different reason if you look at asset flows within the pension plans, whether it's public pension plans, foundations, endowments, corporates, what are they doing? they're investing in alternatives for their active strategies and who is one of the largest asset managers in the alternative space? it's blackstone. they are kno

citigroup doubling its dividend. morgan stanley raidsing by 25%. american express by 9% and wells fargo by 3%! and now, to discuss big bank names he likes now they've been approved by the fed to pay out more dif depds to shareholders w kbw. good to have you with us. >> news for the big banks, the ones thachb sort of restricted from paying bu or dividends to shareholders. if i don't own these banks already, is it too late for me to bet from this? >> we don't think so. especially the biggest banks. what you're seeing here is both the results show they're very stron capital. credit is good. they're going to be paying a lot back in repurchases and dividends to shareholders and we ave a situation where t regulatory standpoint, too. valuations are reasonable, so we e biggest o think the biggest opy for investors today. >> who do you think is the best positioned in s pre and in terms of its future growth plan? >> well, growth really isn't necessarily what you're looking for in the big banlanks today, think bank of america is top of our list. very good res

lino santander, citigroup -- we know santander higher citigroup to analyze the purchase, and santanderh the deepest pockets, the bank that could take on banco popular. it would require a big capital raising to absorb these losses, and i think there are some obstacles also, things like legal claims, legal liabilities that may surface as a result of the situation, and there's a lot a lot of toxic assets to be absorbed. matt: all right, thank you very much. charles plenty, our spain bureau chief, very busy at the moment with this story. we have been very busy with apples ceo tim coke. he says he disagrees with president trump's decision to pull the u.s. out of the paris climate accord. in an exclusive interview with emily chang, he says fixing the global warming problem requires worldwide action. >> i think he did listen to me. he didn't decide what i wanted him to decide. -- ink you decided wrong think he decided wrong. i think it's not the best for the united states, when he decided. of -- the way i look at this thing, do you interact with politicians or do you not, my view is that, fir

wells fargo, bank of america, and citigroup are some of the highest about that ratio.nks and yellow came within two percentage points of that 3% ratio. morgan stanley was the worst of its peers and for the second year in a row. one fed governor said they results show -- the results show large banks will remain well-capitalized. the economic disaster scenario they painted is akin to the great recession. equity prices will lose half their value and unemployment was -- would soar to 10%. banks did better than their u.s. counterparts. all of them were not just above the 3% minimum, but above that by more than two percentage points. deutsche bank trust past with the most flying colors with the leverage ratio of 13.5%. andook ahead to june 28, that is phase two of the stress test call become prehensile capital analysis review. they can investors will find out whether and how much more or less they can return in dividends as well as buybacks. ramy inocencio, bloomberg news, new york. anna: michael sneyd is a still with us. the fed is stressing that bank under tough conditions

scarlet: and citigroup has been held back over its inability to get the signoff from the fed in recent>> i think last year, they were able to go up to a $.10 dividend, so people are hoping to go a little more than that. julia: and why bit of uncertainty today? if we look at last week, they did not incorporate the banks capital returns. they said this is a fresh look at what their progress is. >> the difference between last week and this week, we got last week how these banks did with that type of federal tests they are given. it says this is how it banks leverages should look, but this week it is what is it actually mean for the capital plan and do they get to go ahead of those? morgan stanley trailed wall street during laxly -- last haves test, but doesn't any location for today and how much cash it will be able to return to shareholders? >> they squeaked by for the second time, so i think investors largely expect them to be able to go ahead with whatever their capital plan was, but yes, it is something people are watching, and i think they might be trying to figure out how to get as

. >> reporter: dozens of american companies including apple, citigroup, wal-mart and exxon/mobil have urged president trump not to quit the agreement, arguing participation would help. but in the rose garden today, trump arguing the agreement is bad for the american economy, though saying he's open to finding a way to make the accord more appealing. >> begin negotiations to reenter either the paris accord or really entirely new transaction on terms that are fair to the united states. >> reporter: the world reacting. paris city hall going green in support of the agreement. 61 u.s. mayors pledging to adopt, honor and uphold the paris accord's commitment and president obama releasing a statement saying trump joins a handful of nations that reject the future. but the leaders of france, germany and italy releasing a joint statement saying the paris climate accord cannot be renegotiated. the french president taking a direct shot at trump. >> make our planet great again. >> reporter: janai norman, abc news, washington. >> in response to the president's decision, governor brown says president

when you have big banks like citigroup, morgan stanley, a host of others, all saying that this is a badsignal to our global sends a very this clear line in the sand. clearly a lot of the preannouncement celebration going on. julia: getting louder and louder. scarlet: you have a question for the former congressman? >> i did. percent years, you've been an outspoken proponent of conservatism and climate policy. are you lonely? how many others share your penchant for the topic or your interest in these solutions in washington? bob: the field is getting more and more crowded and we are happy for that. for example, the alliance for market solutions just launched two days ago. that's an exciting effort among business leaders area the climate leadership council launched about two months before that. street.our friends at r the space is getting sort of crowded, which is good. we have a lot of people on the eco-right, as we call it, coming forth to say, you know what, this is a real problem, and we've got free enterprise solutions. there'she reasons that been so much rejection on the right is tha

morgan and citigroup are up 2% or more. coming on the heels of a dodd-frank roll back.s a pank trade on tractor should you save this mover? dan. >> well, i think fade it. listen, you mentioned the two events. they're well known. we know that the fed is going to raise 25 basis points next week. what happened to the 210 spread? it didn't move this week. okay. also, last week what did we get from a lot of these banks? management, q2 is not shaping up particularly great. yeah, they need a little volatility. they don't need the volatility that we saw in today's action in the nasdaq personally. i don't think they do. so when i look out to the 3.5% move, the xlf the track the bank stocks here, i think it sets up as a really good opportunity to once again take profits or short and shoot against that $23 porte level. that's been in place since december. >> i think what was very interesting today is, we were talking about this before we came on is the fact that of course the market has not been very volatile. i think it is very fragile here. evidence of that emerged. we obviously

for months, dozens of american companies including apple, citigroup, walmart have urged president trump not to quit the agreement arguing that participation would help strengthen global competitiveness and create jobs. local governments alsoing chiming in tonight. 61 u.s. mayors now pledging to adopt, honor and uphold the paris accord commitments. . mayor of boston with this message. >> when we talk about heat waves and major storms we're talking about people losing their lives here in boston. >> lot of reaction across this country tonight. rebecca with us tonight, president trump saying the paris accord is bad for american jobs. former president barack obama said the nation is still in the accord will benefit from jobs created. give us a reality check. >> reporter: tonight in this country there are three-times the number of renunl energy jobs as coal jobs. as of now, there are 475,000 wind and those are growing. whereas as those coal jobs, 160,000 of them, they saw those numbers decline 24% last year which is why it's not surprising the largest coal producer in this country has come ou

the big winner of the morning is citigroup up over 3.5%.$336of america will make million in annual dividends. that out bids warren buffett's preferred stock. big news for those guys. in the credit card world, they will buy back dividends. american express up 1% in premarket. softer and was stumbled a little bit, but was able to deliver it dividend, but it has to fix weakness according to the fed. morgan stanley of over 2%. goldman sachs is also rising. no specifics for goldman, but they said it is ok to issue its dividend payout plan. morgan stanley and goldman came close to that fail line. nevertheless, all clear. jonathan: thank you. some stocks to watch, the banks look poised to lead the games and a second day -- to leave the lead the gains in the second day. the stock is trading higher. we seem to be inching towards a deal. monster losses for rite aid after walgreens scraps its takeover bid. us to discuss this is tom lee and david kelly. great to have you, guys. tom, i call you the big, wall street, bear. do you feel like a big, bear on

as deutsche bank and citigroup say they return bearish on government debt if the opposition wins.say they return bearishas the new you got pullil predicts the conservative -- ugov pulling model predicts the conservative -- much susan for joining us. we vote in the u.k. on thursday. what will people vote on? is it security? is it brexit and the economy? mix.: it will be a real when you have general election, you can't control what the topic is. i think theresa may thought this was going to be about brexit and the particular position she wants to reinforce, which is that she alone will make the decision on whether or not we continue to participate in any part of the single market, agreement.have an she alone would make that decision and there would be no more say but for the people and she would basically dictate where it went. that was the basic decision she started from. we have had some terrible experiences here within london and manchester that puts security on the agenda, but frankly, i think the shocker for most people has been to see theresa may herself. she has been very wea

capital stature and finance could fall morgan stanley bank of america and citigroup three of the largest investment banks in the u.s. might be clearing out their london offices and one alternative option being floated around is frankfurt home of the european central bank if the banks were relieved it could cause significant harm to u.k. business in two thousand and fifteen financial services revenue here two hundred billion pounds less than half of which was for u.k. clients move out of london could hurt u.k. employment two in london twenty two percent of the city's three hundred sixty thousand workers or non u.k. citizens with a horrid brock's it their future working there looks bleak there might be hope for those workers though during this summit on thursday british prime minister theresa may is expected to propose an offer to leaders that would allow e.u. residents to stay in the u.k. that would certainly ease the pressure on businesses but we won't know until later in the. and right now a lot of questions remain he wants all of its citizens to remain protected by e.u. law and courts

, posting its best week since early december, this as bank of america, wells fargo, jpmorgan and citigroupe all up 2% or more the rally on the heels of a dodd/frank rollback ahead of the key fed meeting next week. so, is the bank trade on track or should you fade this move dan? >> listen, you mentioned the two events, they're pretty well known. it's important to mention this week we know that the fed is going to raise 25 basis points next week. what happens to the 2.10 spread? it really didn't move this week. also last week, what did we get from a lot of these banks? we got commentary from management that q-2 is not shaping up particularly great. you know, yeah, they need a little volatility. they don't need the sort of volatility that we saw in today's action in the nasdaq personally i don't think they do so when i look out to the 3.5% that the xlf, the etf attracts, the bank stocks here, i think it sets up as a really good opportunity to once again take some profits or short and shoot against that $23 support level that's really been in place since mid-december. >> i think what was very

citigroup,on, goldman sachs, morgan stanley -- all these businesses urging the president to not get out of this agreement. there are prominent heavy kh industries feel it would be in america's best interests to remove themselves from this agreement. vonnie: steve bannon as well wanting out of the accord. an outoes turn out to be decision, doesn't that put more work on everybody when nothing is getting done in washington anyway? kevin: the devil will be in the details. the president could have a series of options where he perhaps removed some salt the agreement but allows other folks to look into it. whoe were top conservatives pushed the white house to have more oversight over the negotiations, the global negotiations regarding regulations. while the president's for filling his campaign promise, should he decide to remove the united states from the paris accord agreement, he just broke with a major one. saying thees president has signed a waiver to ,eep u.s. embassy in tel aviv not move it to jerusalem, as he suggested on the campaign trail. fromwill receive criticism our very important

. >> citigroup's co-head of m&a on the alde making landscape for the second half of the year.ck in a minute >>> our road map for the hour does begin with being halfway there. investors gearing up toward the last trading day of the week, the month, the quarter and the half of the year we'll break down how to play your portfolio for the rest of 2017. >> confirming big news on a partnership for amazon. >> president trump gets ready to welcome south korean president moon to the white house. we'll take you there live but first we have more economic data today crossing the tape. let's get back to rick san terks li for the numbers the 94.5 gets tossed out once you take the 94.5 out the 95.1 even though it's better is actually the weakest number of the year going back to november it's much better than 109.6. what we did on the 5 to 10 year inflation outlook for the mid month look at 2.6 to ultimately the 2.5. still the 228 up a basis point trading pretty brisk actually for a holiday weekend but the ranges were pretty tight carl back to you. >> thank you very much rick santelli investo

bauder of citigroup.from parliament and new york, this is bloomberg. ♪ francine: -- taylor: this is bloomberg surveillance. the trump administration as firing back at james comey. the former fbi director accused president trump of lying in a set a hearing and hours later the president refuted the claim that he demanded loyalty or directed comey to back off the investigation of michael flynn. president trump has proposed that secretary of state rex tillerson mediate the standoff between qatar and a saudi led coalition. qatar may view the president's offer skeptically. he sent out a number of tweets that appeared to back saudi arabia. the house has voted to roll back major parts of dodd-frank. it would accept banks from stricter regulation and would give congress more authority over the consumer protection bill. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i am taylor riggs. this is bloomberg. francine: we just had a tweet saying they are expecti

mix of different types of financials, different types of banks, big banks like tank of america and citigroup, morgan stanley representing the investment tank's banks are out of the equation. with what's going on with bond yields which have been to climbing consistently this week going into the fed position next week. according to traders, it's practically a lot we will see an increase in rates. it are a look at the financial etf along with the 10 year yield in white -- in blue. most recently, we have seen both of them go up. is here on the bottom so it's relatively strong. outside of that, there is one other important corporate story we have to talk about it has to do with the drug industry. the fda in the u.s. has asked erdo to stop sales of ocana which is a powerful opioid painkiller. they wanted to make it less addictive. users were injecting it and set of snorting it. it led to an increase in hiv infections. endo to pullking it. those shares are rallying. mark: let's get to our team covering every angle of the u.k. election. we have our reporter at 10 downing street. nehara: we heard fro

citigroup getting doubled from $.32 to $.16. wells fargo, there was a little bit of trepidation.he scandal, trying to push beyond that. mention, not just results from the stress test and capital return plan, but where we are seeing the bond market as well. we see yields up for the third straight session. that has also been given to feel to the banks, as a group, up for the fourth straight day. anna: julie, thank you. a more hawkish central bank and all those events. thank you very much, julie hyman. let's talk about financial regulation. to the dividends and share buybacks, we've seen a lot of course. theing us here on set, president and ceo of the securities industry financial market association. good afternoon. let's talk about the stress tests. lessou pushing for a rigorous stress test, and what do you get from the administration about where they want to take that process? guest: what i understand is a more efficient approach. the stress test is important, but there could be a more application,cess, and we think the administration took a good step in the recent treasury report

up.pple and amazon expedia was raised to buy at citigroup.nd analyst says there are a number of factors including -- including easing comparables. we are getting commentary on sayingvisor, an analyst the european commission ruling on google shopping could be applied to the travel vertical in the future and the positive for some of those companies. mark: let's get back to the european markets with lots of action in the currencies as we hear from the ecb forum and portugal. after theebounding ecb said the market misjudged president draghi's speech while the pound is rising. mark carney says removal of some monetary stimulus is likely to become necessary. joining us is our reporter paul gordon. alessandra is with us. why is the ecb said to be unhappy about the market reaction to mario draghi's speech yesterday? >> the euro and markets have reacted strongly to the speech yesterday. the euro appreciated and bond yields went up, all this risks danger what they are doing, the message control, saying draghi is not signaling imminent taping, stating s

this is a look at the s&p 500 in white and it looks at citigroup implied sentiment indicator. it measures the instances that mention bullish or bearish sentiment in news stories. when it is more bullish, you see this go green. when it is bearish, you see it go read. there is more bearishness being discussed in the media than is indicated by the red bar, even as the s&p 500 continues to push higher. technologiesoned are the worst performing group, google shares, alphabet trading lower after that big fine from the european union of 2.4 billion euros. the regulators in the eu say that google skewed results to thwart smalling -- smaller shopping services. for offld be an issue of that is if the company is forced to change its practices, change it search engine algorithms. that could potentially be more of an issue, but it is unclear what exactly google is going to do. shares down 1% after falling 1.5% yesterday. we are watching telecom stocks, broadly lower with the exception of sprint. this is as charter and comcast met with executives of sprint in the past month to discuss resel

and also the banks citigroup opened up almost 4%. 3.7% i think that's a follow through trade.ted good news from the stress test result, got the good news and were surprised by the size of dividend and buy back announcements and think this story could run awhile. i push back on the idea that the banks are this orphan neglected hated area because they had this long period after the crisis where nobody wanted to touch them they have outperformed the big banks on the last 1, 2, 3, and 5 years and i do think that you find that professional investors like the group now but doesn't mean they can't still continue to work. >> i should say the winners were bac, jpm and city but at 92.50 that's going to be within a dollar of the high for the year. >> the yield moving up and the yield curve widening out a little bit is going to help there as well. >> no comment yet from warren buffet on his intentions to swap after clearly that's going to be substantial. >> i was just taking a look at shares of berkshire because it should be a beneficial but given it's ownership stakes in bank of america

are many prominent folks within the business community, everyone from elon musk to morgan stanley, citigroup, pushing for the president to remain in this agreement. we are going to get the final decision when he announces it at 3:00 p.m. later this afternoon. vonnie: some are making economic arguments for pulling out of the agreement. ceos are not in agreement with ceos, a good proportion of ceos in the united states, want to stay in. how will the president defend his decision if they don't? pullout kevin: he is going to make the case that perhaps the argument was -- under the previous administration didn't provide enough transparency. we are hearing potentially could allow -- he could allow congress to have more oversight. the caliber of ceos and business groups that are pushing back against the president for withdrawing from this is swift and it is forceful. in fact, elon musk has threatened to leave the business council of advisors he sits on if the president actually follows through with this and not back out of the agreement. vonnie: the current for theration environmental protection ag

. >> which one >> citigroup >> they just reported the stress test that flying colors, next week, i thinkthey'll ask for a bigger dividend. i like it. sir? >> hi, jim steve from san antonio, texas. i want to thank your staff for all you do, for the small investor, what you educate and what you teach >> thank you thank you for coming on. >> my stock is the crossroads of the stay-at-home economy, where that's become much more important. and the humanization of pets there's a medical company that has a potential blockbuster drug for allergies in pets that do not suppress the autoimmune system, not reflected in the revenues yet, zoadi. it's approved in europe and the u.s. >> like it vch i think it's good. by the way, i do prefer idex that's the best one. yes? >> hi, jim auggie from berkeley heights, new jersey big ba yao from berkeley heights. with patent pressure on the horizon, what are your thoughts on avity >> business is good. it's real good i'm not worried about the patent ex per ration. i think they'll pull it off. i like the group very much >> i'm denise from new york. i love your sho

bank of america and citigroup, not so much, but the whole thing might be $30 billion. >> that includes midsize bank as well, they are skipping the qualitative. you might say hey let's go, give up more shares in dividends. it is a lot of money. it has been inching up. this year has been bigger jump, because they're more comfortable. looking to the future, there is a new president who keep saying he will deregulate and get rid of dodd-frank. his people have made suggestions that the stress test will get even easier. the banks are more hopeful. vonnie: i want to point out, is this partially because they need to reward shareholders at this point? particularly when it looked like the fed would raise rates, but that has come so slowly that it has not benefited the banks. >> the banks have been laggards in all of this. their dividends and share buybacks were so little -- for a while nonexistent. they had to build up capital after the crisis. after they did it they could not increase them too much. they are coming from a low point. as they keep raising, it is still not at the level where they

what is more fascinating is these companies don't know what to do with the capital they have citigroup is sitting here with this huge amount of what they call excess capital, what i call asset deficit, they don't know what to do with the money. they have no vision. they have no fought chore outlook which says this is what is going to be happening in this industry five years from now this is how much capital we'll have this is how we'll deploy it to grow earnings. so you have kind of a mess in terms of trying to figure out what these companies are, what they're doing, where they're going. that keeps the multiples on these stocks relatively low. >> i'm a former prop trader myself, it was great fun in the '90s, i don't know if i created economic benefit for the economic kingdom by doing that activity what's the argument for rolling back on volcker and letting banks trade again? >> i don't think the banks would argue they want to do prop trading as much. the reason for trying to roll back volcker is more bureaucratic than economic or financial. so the banks have to report to fooef differe

citigroup, eons. this will make it better as it goes forward. >> you have pepsi but not coca-cola.hat does that mean? >> you have pepsi. what this means is if you are somebody and i have would have say you have pepsi, a series of the world's leading consumer products companies, leading companies and leading consumer product companies who are in this, if you are a provider of capital who thinks this is one of the issues, and if you think that even obstructing from climate change but -- abstracting from, change the managing risk opportunities, that is one of the factors. you use management to judge the factors for the company. it will matter of somebody -- if somebody is adopting something like this or similar to this and overtime is that critical mass builds, it will become increasingly important. there is no comment on any company who did not sign as if one went out to every company on the planet, as though they have been surveyed, it is the leaders that were there that were focused on this issue and came in behind it. a month ago there were 30 companies and $1 trillion or so marke

ask the people at citigroup, who i roasted -- sandy wylde to this day despises me because i spent three him. john thain while he was at the new york stock exchange, three years roasting him because they didn't return my phone calls. neil: wow. >> it's just -- neil: you're a mean person. >> here's the thing, you have targets and you have sources. that's journalism. neil: all right. david, one of the things that's being raised is whether the president, even with these tweets, keeps the argument going. now, i understand what he's saying. i don't believe he does get, whether you agree or disagree with him on certain policies, a fair shake from the press, because i do believe the press does hate him. i think that's fair to say. now, who started what and how bad it is, i think the press should rightly be condemned for not even trying to balance things out. leaving that aside, by cutting back on the briefings or keeping these gaggles even limited, does it force the press to do more of this stuff? >> well, controlling the narrative is terrifically important in politics, and you control the narr